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Microsoft Azure Stack Software Packaging and Pricing


Last week Microsoft released the Microsoft Azure Stack software packaging and pricing information and you can download the license datasheet here.

Microsoft Azure Stack is licensed in two different ways, either as a pay-as-you-use consumption model and as a capacity model. The pay-as-you-use consumption model is licensed by Microsoft via the Enterprise Agreement (EA) or Cloud Service Provider (CSP) licensing programs (note CSP is available through HPEs Hybrid IT Licensing Solutions (HILS), see below for contact details). The capacity model is available via EA only and is purchased as an Azure Plan SKU via normal volume licensing channels.

Azure Stack pay-as-you-use consumption model

There are no upfront fees with the pay-as-you-use consumption model and you only pay when you use a service. With pay-as-you-use, usage is metered and usage data is transmitted to Microsoft Azure commerce, where the information is integrated and billed with your public Azure usage. Additionally, you are not charged for the virtual machines and software that are required to run the Microsoft Azure Stack fabric. There are no usage charges for cloud infrastructure, management, security, and identity services, along with networking and Service Fabric. So with the pay-as-you-use model, you can take advantage of better cloud economics and only pay for resources which are actually consumed.

Pay-as-you-use service pricing

The metering units for the services available on Azure Stack at general availability (GA) are listed below. All services are entirely stand-alone.

  • Base virtual machine $0.008/vCPU/hour ($6/vCPU/month)
  • Windows Server virtual machine $0.046/vCPU/hour ($34/vCPU/month)
  • Azure Blob Storage $0.006/GB/month (no transaction fee)
  • Azure Table and Queue Storage $0.018/GB/month (no transaction fee)
  • Azure App Service (Web Apps, Mobile Apps, API Apps, Functions) $0.056/vCPU/hour ($42/vCPU/month)

Pay-as-you-use service pricingPay-as-you-use service pricing


CSP customers benefit from being able to leverage the same licensing agreement, covering both Azure and Azure Stack. Here customers can keep the same tenant subscription ID and billing is integrated showing both Azure and Azure Stack services. No additional agreements are required to enable pay-as-you-use with Microsoft Azure Stack via the CSP licensing program. You just simply need to register the Microsoft Azure Stack system using an admin account that is tied to the CSP agreement.

Licensing options - Consumption modelLicensing options - Consumption model

Microsoft Azure Stack capacity model

The Microsoft Azure Stack capacity model offers a more classic licensing model to support disconnected scenarios. An annual subscription fee licenses all the physical cores on your Microsoft Azure Stack appliance. The capacity model is available in either an App Service package or an IaaS package. The App Service package includes all the services on the IaaS package, plus Azure App Service (which includes Web, Mobile, Logic Apps, and Functions).

  • App Service package ($400/core/year) includes App Service, base virtual machines and Azure Storage
  • IaaS package ($144/core/year) includes base virtual machines and Azure Storage

Capacity model pricingCapacity model pricing

You will also need additional licenses if you deploy Windows Server and SQL Server virtual machines on the Microsoft Azure Stack capacity model.

What else is required

Azure Stack is sold as an integrated system, meaning that the Microsoft Azure Stack software comes pre-installed on prescribed hardware from HPE. A complete Microsoft Azure Stack system is comprised of hardware, you can choose from a series of CPU, memory and caching and capacity drive options, software, and support.

For further information on hardware, software, and support pricing, please reach out to your HPE Account Manager. HPE has a dedicated business unit previously mentioned called the “Hybrid IT Licensing Solutions” or HILS for short, that can assist with Microsoft Azure Stack software packaging and pricing, they can be contacted via

You can learn more about HPE ProLiant for Microsoft Azure Stack today.

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